Supermarkets 'beating up' their suppliers |
| Thursday, 13 November 2008 | |
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Supermarkets are increasingly pressurising their suppliers as they attempt to compete with discounters Aldi and Lidl in the developing recession, it has been claimed. In an interview with the Farmers Guardian, National Farmers' Union president Peter Kendall said the union is getting calls from suppliers claiming the big four are becoming aggressive in a competitive grocery sector. He said: "This is becoming a bigger and bigger problem. Suppliers are being beaten up and it is being driven by supermarkets' desire to compete with the discounters. It is having diabolical consequences for suppliers in the medium-term." But the British Retail Consortium food director Andrew Opie dismissed the claims and said "supermarkets have regular discussions with suppliers". Opie added: "Very few farmers directly supply supermarkets and the recent grocery market inquiry did not find evidence of abuse in the relationships between retailers and suppliers." Earlier this month, a large food supplier said that Tesco is facing a backlash after giving some suppliers fresh terms. The claims came after it allegedly gave new "take it or leave it" terms to alcohol suppliers to try and reduce costs in the credit crunch. Related Articles
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